Jan 31, 2014
The Associated Press

ARMONK, N.Y. – IBM CEO Virginia Rometty and the rest of her senior management team are relinquishing their 2013 bonuses as penance for the technology company’s lacklustre performance last year.

The decision disclosed in a Friday regulatory filing will result in a substantial pay cut for the affected executives, whose annual bonuses often exceed their salaries.

As CEO, Rometty will be the hardest hit. She received a $3.9 million bonus in 2012 and was eligible for a $4 million payout last year, although it’s unlikely she would have received that much because IBM’s financial results didn’t live up to expectations.

IBM’s revenue slipped 5 per cent last year. The Armonk, N.Y., company’s earnings dipped by less than 1 per cent, thanks to cost cutting.